THE STATE OF MORELOS, MEXICO

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2 2 THE STATE OF MORELOS, MEXICO GLOBAL CONTEXT The State of Morelos, has a development strategy that seeks to balance economic growth with social and environmental well-being. Since 2012, the New Government Vision Morelos, has developed public policies that aim to achieve a new and sustainable State, with social, environmental and economic development. Investments have been made in the agricultural, industrial and service sectors, developing new models in order to achieve economic growth while preserving our rich natural resources and culture. Together with six other States in Central Mexico, Morelos belongs to the Environmental Commission of the Megalopolis, which represents one fourth of Mexico s total population. Morelos makes an important contribution to the development of the central region of the country and provides environmental services such as water, biodiversity and clean air to the other States, including Mexico City. Due to its favourable geographical location, just one hour away from Mexico City, Morelos has an ideal climate throughout the year which has privileged the State with eight out of the ten major ecosystems in the country, sustaining great biodiversity and natural resources. Morelos, also aims to be a center for international trade and knowledge: In 2014, the State captured 83.7 million dollars of foreign direct investment, 226% more than in To achieve our goals, we started to modernize the road infrastructure and the supply of natural gas. The State has increased the connectivity by road and air, in order to become an axis across the country, connecting the Gulf of Mexico with the Pacific Ocean and the most important ports of Tampico and Veracruz on the Atlantic with Acapulco on the Pacific Coast. These actions will allow us to increase productive chains and transport in order to boost the economy and to meet the needs of the domestic and global market.

3 Nezahualcóyotl 3 Mexico City International Airport Morrow LLerdo de Tejada 8 Av. Morelos Av. Morelos Av. Morelos 2 3 Rayón 4 Hidalgo H. Galeana Abasolo Hidalgo 9 Juárez Boulevard 10 Huitzilac 1 2 Tepoztlán km Airport - Cuernavaca Downtown Travel time 1 hour 40 minutes Cuernavaca 5 Miacatlán 3 y 4 1 y 2 Puente de Ixtla 2 Temixco 2 y 3 Tlayacapan Oaxtepec 4 Tlaquiltenango 5 y 6 Yecapixtla Cuautla 7 24 km Cuernavaca Downtwon - 1 Cuernavaca, Morelos, Convention Center Travel time 34 minutes Centro de Convenciones Xochitepec Cd. Ayala Jantetelco Tlaltizapán 7 3 Jojutla 1 Jonacatepec 4 Morelos Lagoons 1 Zempoala 2 Tequesquitengo 3 El Rodeo 4 Coatetelco Magical Towns 1 Tlayacapan 2 Tepoztlán Archaeological Sites 1 Xochicalco 2 Coatetelco 3 Chalcatzingo 4 Las Pilas 5 Teopanzolco 6 Tlahualtepec 7 Olintepec Water Parks 1 Agua Hedionda 2 Santa Isabel 3 Las Estacas 4 PAO 5 Las Huertas 6 El Rollo 7 Ex-Hacienda Tourist Attractions 1 Jardínes de México 2 Jardín Borda 3 Cine Morelos 4 Casona Spencer 5 Catedral 6 Museo Robert Brady 7 Parque Revolución 8 Kiosko 9 Zócalo 10 Museo Cuauhnáhuac

4 4 INVESTMENT OPPORTUNITIES IN MORELOS Morelos is located in Central Mexico, one hour away to the south of Mexico City. The territory consists of approximately 5000 km 2 and is divided in 33 municipalities. It has a large and modern highway infrastructure and can easily be reached from the. International Airport in Mexico City, by the autopista del Sol towards the city of Cuernavaca. The key sectors of the state are research services, agribusiness, automotive industry and tourism. With significant advances in information technology and in the pharmaceutical and cosmetics industries. In Morelos, important international companies have build their plants, such as: Baxter, Unilever, Malta Clayton, Saint Gobain, Bimbo, Continental Temic, Autotek and Nissan, the first plant outside of Japan,that manufactures the Taxi of the Future, which circulates in the streets of New York. In the agricultural sector, Morelos is an important producer of food products such as rice, avocados and especially sugar cane. The natural conditions allow large green houses with a large variety and production of flowers, such as the Noche Buena or Poinsettia, which have its origin in the State of Morelos. Also, important food crops are produced, such as: nopal, corn, fruits, cold weather and tropical fruits; as well as herbs, onion, agave, peanuts, amaranth and sorghum. Also, an important industry of ornamental fish has developed in order to supply the national and international market. Morelos hosts more than 40 research centers, and is now consolidated as a state dedicated to knowledge and education. In 2015, Morelos will be the first Mexican State, connected fully to the internet, with more than 4000 hotspots in public spaces. SPECIFIC PROYECTS TECHNOLOGY-BASED COMPANIES AND KNOWLEDGE ECONOMY INNOVACyT Science and Technology Park. INNOVACyT is a Science and Technology park, located 20 minutes south of the city of Cuernavaca. It is an incubator for technology and knowledge based companies that promote collaboration between entrepreneurs, technology specialists and scientists.

5 5 CICATA is The Center for Advanced Research, Science and Technology of the National Polytechnic Institute, which is located next to INNOVACYT, and offers support in the area of biotechnology, pharmaceutical and chemical industry. Also,CONACyT, the National Commission for Science and Technology, will build its permanent headquarters and research center in this area. Specialized Research Centers Morelos hosts some of the most important research centers in Mexico. For the industrial sectors and technology-based companies, Morelos specializes in the following activities: Chemical and Physical Technologies applied to Materials. Engineering and Applied Science. Renewable energy technology. Life Sciences, Health and Food. Agricultural Sciences. Environment and Conservation. Mechanical and Mechatronics Engineering. Electrical and Electronics. Chemical and process Engineering. Information Technology. Bioengineering National Center for Research and Technological Development CENIDET Morelos hosts two of the most important research Institutions in the area of renewable energy: The Institute for Renewable Energy of the National University of Mexico The National Institute for Electric Research Both have advanced research and technology in the areas of power generation and renewable energy.

6 6 MORELOS TOURIST DESTINATION Morelos has always been a favorite tourist destination for artists and scientists. Due to its wide range of geographical features and diverse ecosystems, Morelos offers many attractions ranging from the northern forests to the tropical forest of the south. The history, culture, traditions, magic, joy, nature, wellness and relaxation, have attracted people from all over the world, looking for a new and alternative lifestyle and well being. Archaeological sites Morelos territory has witnessed great human activity for thousands of years. Some of the best evidences are provided by the archaeological sites from Chimalacatlán with its megalithic constructions; Chalcatzingo, Olmec city with beautiful and huge carved reliefs; Xochicalco, declared World Heritage Site by UNESCO; Tepoztlán, considered a Magical Town and Teopanzolco whose main building is a replica of the Great Temple, core of the Aztec empire. Convents There are eleven convents Augustinians, Dominicans and Franciscans dating from the sixteenth century. In the early nineties, they were declared World Heritage Sites by UNESCO. Franciscan Monastery of the Assumption of Cuernavaca, the Dominican Convent of the Nativity in Tepoztlán and the Augustinian Convent of Saint John the Baptist of Tlayacapan are well known by their beauty, architecture, great landscapes and its rich history. Haciendas Nowadays, former productive Units called Haciendas from the XIX century offer world class services. As boutique hotels they are attractive options for ecotourism, adventure and sports. More than 100 Haciendas were build, over a period of 400 years, the vast majority for processing sugar cane and its derivatives. The first Hacienda was founded in Cuernavaca by Hernán Cortés, conqueror of Mexico and Central America. Cuernavaca The city of Eternal Spring offers unique attractions such as the Palace of Cortés,which was the official residence of Hernán Cortés, the Conqueror of Mexico, the Robert Brady Museum, house of the American collector and the famous hotel and restaurant Las Mañanitas. Lake Tequesquitengo The Lake is one of the main destinations with thousands of visitors. Here it is possible to perform water sports such as skiing, wakeboarding, triathlon and swimming.

7 7 Chimalacatlán Chalcatzingo Tepoztlán Teopanzolco

8 8 The new Cable Park is the only one in Latin America with a solar energy system. Arena Teques, overlooking the lake is one of the largest arenas in México and has offered first class shows for up to 10 thousand people. Jardines de México (Gardens of Mexico) The largest floral theme park in the world and a unique project in Latin-America. It is open 365 days of the year, covers 126 acres of land, distributed in nine theme gardens, convention center, entertainment center and restaurants. It has generated more than 1,000 jobs for the local inhabitants and nearby communities and more than 3,000 indirect jobs. Health Tourism Morelos is known internationally as a destination for health and social tourism. Modern and varied concepts have been developed for hotels and spas with excellent facilities and qualified personnel. The natural SPA and water park Agua Hedionda is considered one of the best Waters in the world due to its mineral properties. Conventions Only 20 minutes south of Cuernavaca is the Morelos Convention Center, with a capacity for 4000 people with a network of hotels, restaurants, golf courses and certified industry professionals at the highest standards. It has hosted many international Conferences including Green Solutions 2013 and Green Alternatives 2014, 2015 and 2016, which now is an international annual environmental event, featuring real and local solutions to climate change, sustainable cities and municipalities and green business and technology. Pueblos Mágicos - Magic Villages The villages of Tepoztlan and Tlayacapan are part of the national network of magic villages of Mexico. They are ideal sites for tourism, featuring their traditions, festivals, regional cuisine, historic monuments and natural scenes that have remained for thousands of years. Currently, other villages of Morelos are also candidates to become magic villages such as: Tlaltizapán and Zacualpan de Amilpas. Zapata Route Emiliano Zapata is one of the great heroes of the Mexican revolution. his agrarian struggle for

9 9 Zempoala Chichinautzin Las Estacas Arena Teques Jardines de México

10 10 Tequesquitengo

11 11 land and liberty took place in Morelos. All across the state we find sites and buildings reminding us of these important historic events of the Mexican revolution. They include a touristic path of several villages, museums, hotels and amazing places where El Caudillo del Sur formed his legend. In Anenecuilco,his natal village the local Museum shows the history and life of this great heroe. Historic Centre of Cuautla Zone of historical monuments built from sixteenth to nineteenth centuries. During the struggle for independence took place the historic siege made for 72 days suffered by the population. In Cuautla remains the rests of the General Emiliano Zapata. INFRASTRUCTURE Natural Gas Pipeline and Thermoelectric of Huexca Presently, the Infrastructure for supply of Natural Gas is being developed, in order to reduce overall costs for energy supply to industries and companies. With more than a $680 million investment it aims to be an efficient system that will convert 60% of the fuel (natural gas) into electricity, with advantages such as low environmental impact, low fuel costs and great flexibility of operation. Autopista Siglo XXI Gulf - Pacific The construction of the XXI Century Highway connecting the Gulf of Mexico with the Pacific and the states of Veracruz, Puebla, Morelos, Guerrero and the State of Mexico. This new highway will safe important travel time and will lower traffic impact. The new section will have a length of 62 kilometers with an investment of 3 billion pesos. Railway Cuautla Multimodal Station This Railway is reactivated with private and public investment. With the installation of a multimodal Station the rail will be serving to all industrial areas that need to transfer goods to the 5 border points with the United States and the shipping points in the Gulf of Mexico and the Pacific Ocean.

12 12 Via Express Cuernavaca This project will improve the traffic flow traveling from the DF to the Pacific. REAL ESTATE DEVELOPMENT In Morelos public investment for development is made with a focus on sustainability and respect for the environment mainly pursuing creation of long-term jobs and a better labor market. Las Plazas Outlet Cuernavaca Outlet Cuernavaca Places project will be developed by the construction company GICSA Cababie Group, with an investment of 2 billion 400 million pesos. The complex will consist of 180 stores, a residential area of 104 apartments and a hotel with 140 rooms. Las Plazas Outlet will generate 400 jobs during construction and 500 permanent jobs. Ecozona Cuernavaca The Government of the State of Morelos takes on the challenge of shaping the growth of its cities to prevent overflow into the hills, valleys and ravines causing serious environmental damage. The Ecozone in the Cuernavaca Historic Center will be an area of great urban dynamism in which the main aim is to recover and improve the public space, urban mobility and to recover environmental quality, while promoting economic and social activity. Residential Club Nautico Teques. Club Náutico is a new and sustainable residential construction lake side to Tequesquitengo. It includes 100 meters of waterfront, an area of m 2, 60% green areas and a hotel with 100 suites. Teques Villas. Urban development with 780 homes and commercial area on the new road-tlatenchi-jojutla Tequesquitengo and 72% green areas; garden water treatment plant system and solar power lighting.

13 13 INDUSTRY The key sectors of the state are research services, agribusiness, automotive and tourism industries. With significant advances progress in information technology and pharmaceutical and cosmetics industries. Green Industrial Development Yecapixtla DIVE Industrial park focused on the automotive, pharmaceutical and cosmetic industry, is set in an area of 46 hectares. DIVE Yecapixtla will be a key element to economic development of the central region of the country, promoting technological innovation. Industrial city of the Cuernavaca Valley CIVAC Industrial park and residential neighborhood located on 568 acres. Civac is considered the most important economic development center of the State of Morelos and it accommodates a considerably amount of national and international enterprises of various industrial branches such as auto parts, chemical, pharmaceutical and agribusiness. Baxter Baxter International Inc. came to Morelos in 1974 and was one of the first companies to settle in CIVAC. Develops, manufactures and markets products for health care, such as medical devices, pharmaceuticals and biotechnology. Unilever Unilever is located in CIVAC and its new aerosol plant aims to cover at least 40% of the Mexican market for deodorants. This new plant generated 250 direct jobs and 1000 indirect jobs. Parque Industrial Cuautla World-class companies increased their investment and production by up to 100% as is the case of Hilos Yecapixtla increasing their consumption to 10% of the national cotton production and producing 1,000 tons a week. In 2014, Morelos recorded significant reinvestment of approximately 172 million dollars. Continental Over 20 years in the Industrial Park of Cuautla performing production, development and research in the automotive sector with more than 1800 direct jobs and 350 indirect,

14 14 Baxter Autotek

15 15 Saint Gobain Located for over 18 years at the Industrial Park of Cuautla is leading producer of flat glass and windshields. Autotek Autotek is a Cosma division, affiliate of Magna Corporation in the manufacture of automotive parts. It will produce the chassis for a new assembly model in CIVAC Nissan Plant. AGRIBUSINESS Today, the primary production of Morelos, is delivered to the local market as well as to North America, the European Union and Asia. Morelos is considered one of the most important producers of vegetables, cactus and avocado in the country with a high quality of its produce. The natural conditions, also allow large production of plants and ornamental fish. Beef Processing Facility TIF It will produce meat products with hygiene quality standards for the national and international market. Parque Agroindustrial The AgroPark will be provided with logistics and basic infrastructure for different activities such as primary production, food processing, storage, processing, technology transfer and marketing to increase productivity and competitiveness among value chain agricultural products. Avocado Avocado is one of the products with higher added value in the state. Because of the quality of our avocados, we have achieved and penetrated different markets. Morelos produces 35 thousand tons of avocado per year, which have been certified for use in the European Union. Citrus Fruits 28 municipalities produce Persian lemons and oranges. Rancho el Pochotillo a citrus collection center and packing house exports 40 tons of lemons per week to Miami and Amsterdam.

16 16 Sorghum Sorghum is the second most important crop in Morelos just behind sugar cane. Morelos is among the four major producing states and this activity is the main livelihood for more than families. Amaranth A cereal rich in calcium, phosphorus and magnesium, which helps to maintain balance in the body, especially the central nervous system. It is usually marketed in the form of candy, cereal and flour. Rice The efficiency of rice production in Morelos is one of the highest in the country. In 2000 Morelos s average rice production was 94 hectares per cycle with a yield of 10.3 tons per hectare. Ornamental fish Morelos produces more than 70% of the nation s domestic supply. More than 2 million fish per month. Ornamental Plants Morelos is one of the nation s largest producers of ornamental plants. With the highest quality, Morelos has received awards on national and international level. The seeds are imported from different countries like the United States, the Netherlands and France. Honey The current average production of honey remains above 810 tons per year. Currently over 50% of production is exported from Morelos indirectly to Europe. Onion Thanks to the climatic conditions in Morelos, our onions have a unique flavor and quality. Morelos s volume of onion production, is equivalent to 9% of the total onion production in Mexico.

17 17 Tomato It meets the highest standards of quality for the domestic and international markets, offering top quality tomatoes to 90% of total production and ensuring a shelf life of 25 days. Peach Given the climatic conditions in Morelos, peach production manages to keep a fairly long period, offering fruit almost all year. Nopal The nopal of Morelos has managed to enter different markets nationally and internationally. Morelos is now considered the second place nationally in production of nopal. Reed In Morelos, sugar mills are owned by a company that is responsible, efficient and friendly to the environment and takes full advantage of the system-product of sugar cane bagasse co-generated energy to harness, rum, molasses and ethanol. Sugar mills Emiliano Zapata and Casasano stands out for the best performance in the factory. Casasano is among the top three in field performance. Sugarcane workers of the mills of Morelos are the most productive nationally, we are leaders in field performance and sugarcane production. Orgullo Morelos Distinguishing the trade mark: Orgullo Morelos, these products are provided with a special credit in order to develop. From micro manufacturing of sweets and macrobiotic grains, organic gourmet sauces, energy drinks of aloe vera, seeds, handicrafts, cereals high in nutritional content among others. Now sold locally and beginning to be exported, these products represent an important income for rural families dedicated to the conservation of the environment and local culture.

18 18 Rise crops

19 19 SUSTAINABLE FOREST MANAGEMENT Despite occupying only 0.25% of the area of Mexico, in the state of Morelos there are 8 of the 10 major ecosystems recognized in the country. It ranks 17th in terms of species richness of Mexico. Harboring 33% of birds, 23% of freshwater fish, 21% of mammals, 14% of reptiles and 10% of Mexican species of flora. There are six State Natural Protected Areas and five national protected areas by CONANP. Integrated Waste Management. The strategy is to divide the state into 10 regions to ensure lower cost of shipments of waste and establish permanent collection centers. This strategy minimizes the costs to municipalities by proper disposal of waste, also minimizing the emission of greenhouse gases emitted by waste, creating new business opportunities and preventing contamination of soil, air and water. Cane fields

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